Updated
Updated · The Motley Fool · Jul 16
Motley Fool Sees Micron Reaching $1,875 by 2027 on 91% Upside
Updated
Updated · The Motley Fool · Jul 16

Motley Fool Sees Micron Reaching $1,875 by 2027 on 91% Upside

3 articles · Updated · The Motley Fool · Jul 16

Summary

  • $1,875 is The Motley Fool’s late-2027 target for Micron, implying 91% upside from about $982 a share and valuing the chipmaker at roughly $2.1 trillion.
  • AI-driven memory shortages underpin that call: Micron’s fiscal third-quarter revenue jumped 345%, adjusted net income surged more than 1,200%, and current-quarter guidance points to another 340% revenue increase.
  • The forecast assumes Micron trades at 8.5 times sales in 2027, below its current 12.4 multiple but above its five-year average of 4.7, against Wall Street revenue estimates of $250 billion.
  • The main risk is the memory industry’s boom-bust cycle: after pandemic-era demand, NAND and DRAM prices fell about 70% by mid-2023, and new capacity due in 2027 could start easing shortages in 2028.

Insights

With new factories opening in 2027, will a supply glut stop Micron's stock from reaching its predicted $1,875 target?
Has the AI boom permanently broken the memory chip industry's historic boom-and-bust cycle?